Anticipating an increase in crypto-related tax violations, a high-ranking official from the Internal Revenue Service (IRS) has emphasized the rise in crypto tax crimes. Guy Ficco, the Chief of Criminal Investigation at the IRS, stated in a recent interview with CNBC that cases involving violations of federal income tax laws specifically related to cryptocurrency are becoming more prevalent.
Ficco highlighted the types of offenses that are on the rise, including failure to report income derived from crypto sales and attempts to conceal the true basis of crypto assets. He predicts that there will be a significant increase in Title 26 crypto cases this year and beyond.
Recognizing the significance of collaboration between public and private sectors in combating crypto-related crimes, Ficco acknowledged the vital role that companies like Chainalysis play in tracking the ownership of digital assets. He praised the expertise and tools provided by these companies, stating that they are crucial when investigating cases involving the obfuscation of true ownership in the crypto world.
Ficco emphasized that while IRS special agents excel in tracing and following money due to their accounting backgrounds, they require the support of expert companies like Chainalysis to navigate the complexities of crypto investigations. The tools and applications provided by these companies enable special agents to determine whether a crime has been committed.
In conclusion, Ficco stressed the importance of public-private partnerships in combating crypto tax crimes and highlighted the valuable contributions made by companies like Chainalysis. With an expected increase in crypto-related tax violations, the collaboration between law enforcement agencies and specialized companies will play a crucial role in maintaining the integrity of the tax system.
